The following data pertains to Account Corp.'s:Account Corp.'s payment to suppliers(in number of days)Account Corp.'s collection from customers(in number of days)Mail Time5Mail Time644Processing TimeProcessing Time1Clearing TimeClearing Time11.Account Corp.'s average daily payment is P2,000 meanwhile daily collection average P1,500.How much is the average daily disbursement float?2. How much is the average daily collection float?How much is the net float?3.

The net float is calculated as difference in average daily disbursement float and average daily…

Answered: How much is the average daily…

How much is the average daily disbursement float? How much is the average daily collection float? How much is the net float?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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Question

The following data pertains to Account Corp.'s:
Account Corp.'s payment to suppliers
(in number of days)
Account Corp.'s collection from customers
(in number of days)
Mail Time
5
Mail Time
6
4
4
Processing Time
Processing Time
1
Clearing Time
Clearing Time
1
1.
Account Corp.'s average daily payment is P2,000 meanwhile daily collection average P1,500.
How much is the average daily disbursement float?
2. How much is the average daily collection float?
How much is the net float?
3.

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